SME Exports from January to September This Year Reach Record High of $88.9 Billion

[Asia Economy Reporter Choi Dong-hyun] Small and medium-sized enterprises (SMEs) exports from January to September this year reached $88.9 billion (approximately 127 trillion KRW), marking an all-time high.

The Ministry of SMEs and Startups announced the '2022 Q3 SME Export Performance' on the 26th. SME exports in the third quarter of this year recorded $28.41 billion (approximately 40.7 trillion KRW), a 0.02% increase compared to the same period last year. On a cumulative basis from Q1 to Q3, exports rose 5.8% year-on-year to $88.9 billion, the highest ever for the first three quarters.

The number of SMEs exporting more than $10 million on a cumulative basis from Q1 to Q3 was 1,668 companies, a 5.9% increase compared to 1,575 companies in the same period last year. However, the total number of exporting SMEs was 83,935, a 0.2% decrease from 84,116 companies in the same period last year.

Looking at major export items in Q3, automotive parts (13.7%), automobiles (29.3%), and mechanical components (13.2%) all grew by double digits compared to the same period last year. Automobiles recorded the highest growth rate and increase among the top 10 export items in Q3, setting a quarterly record high export performance due to increased exports of used cars to Russia and neighboring countries. Automotive parts showed a continuous increase for three consecutive quarters, driven by improved supply of vehicle semiconductors and a favorable finished car industry, with exports rising to the U.S., Mexico, and Vietnam. Aluminum exports increased for the 11th consecutive quarter due to rising demand as a lightweight material for electric vehicle batteries, with exports growing to China, the U.S., and Vietnam. Semiconductor manufacturing equipment (9.1%) and electronic application devices (5.5%) also showed strong performance, with five of the top 10 SME export items increasing. Conversely, steel plates (-16.8%), synthetic resins (-8.2%), and plastic products (-7.3%) declined compared to the same period last year.

By export destination, among the top 10 export countries, exports increased in seven countries except China, Vietnam, and Hong Kong. The U.S., Indonesia, and Mexico recorded their highest-ever export performances in Q3. U.S. exports rose 9.2% year-on-year, thanks to increased exports of automotive parts and semiconductor manufacturing equipment influenced by manufacturing promotion policies. Mexico, a North American automotive production hub, saw exports grow 6.6% year-on-year due to significant increases in automotive parts and industrial electrical equipment exports. On the other hand, China and Hong Kong experienced overall declines in major export items due to delayed economic recovery from COVID-19 lockdowns and supply chain self-sufficiency policies, resulting in total exports dropping 8.9% and 19.7%, respectively, compared to the same period last year.

Online exports in Q3 reached $190 million, a 10.7% increase year-on-year. Exports centered on the U.S. and China grew significantly, raising the share of online exports within SME exports slightly from 0.6% to 0.7%. Notably, SMEs accounted for 79.1% of the total domestic online exports of $240 million in Q3, showing strong performance in the online export sector. By item, audio devices (73.3%) and computers (103.5%) saw large increases compared to the same period last year. Particularly, Kyrgyzstan showed a remarkable export growth rate of 252.9% due to a significant increase in cosmetics exports. The cumulative number of SMEs engaged in online exports in Q3 was 3,217, a 23.2% increase year-on-year.

This content was produced with the assistance of AI translation services.